Designed by architect Herbert J. Krapp for the Shuberts, the structure is noteworthy in that it is situated diagonally on its site to fit the maximum number of seats possible. Its external appearance, indistinguishable from many other Broadway houses, does not hint at the unusual layout within. The building has been designated a New York City landmark. The theatre's proscenium opening is 44 feet 11 inches (13.69 m) with a grid height of 54 feet 9 inches (16.69 m).

The theatre opened on February 11, 1921, with the musicalThe Rose Girl. The Shuberts sold the property in 1935, and for the next two decades it was used as a movie theater and television studio for NBC and later the DuMont Television Network, when it was known as the Ambassador Tele-Theatre. In 1956, the Shuberts assumed ownership again and returned it to strictly legitimate use.